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Adidas and Beyoncé have agreed to part ways after the pop star’s Ivy Park activewear line fell short of annual sales expectations by more than $200 million, according to the Hollywood Reporter.
After entering a creative partnership with Adidas in 2018, the Grammy-winning singer relaunched her Ivy Park activewear line and also developed footwear for the brand, but it has been underperforming, the Wall Street Journal reported in February.
Adidas had hoped Beyoncé’s Ivy Park line would sell at the same rate as Kanye West’s Yeezy brand, but it has failed to do so, the outlet noted.
“The company sought to diversify its portfolio with women and hoped to replicate the success that it had with Mr. West,” WSJ reported.
“Adidas executives expected hundreds of millions of dollars in Ivy Park sales and promised Beyoncé guaranteed annual fees and creative control — but it soon became clear that Ivy Park collections weren’t gaining the traction that Yeezy products did,” the outlet added.
Roughly half of the merchandise from five of the last six Ivy Park releases is reportedly still sitting on the shelves, unsold.
Adidas had projected $250 million in sales for 2022, but by the end of last year, Ivy Park only reached $40 million in sales — down from $93 million in 2021 — which was a staggering deficit. Meanwhile, Beyoncé gets about $20 million in annual compensation.
Overall, Adidas has been losing money on the brand, according to documents obtained by the Wall Street Journal.
Now, Beyoncé is “excitedly looking to reclaim her brand, chart her own path and maintain creative freedom,” the Hollywood Reporter writes.
In 2019, Beyoncé reportedly walked out of a meeting with sneaker company Reebok because she believed there was not enough diversity in the room.
You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.